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BC3 finances in good shape

Audit finds loan errors

BUTLER TWP — An unknown number of loans for students at Butler County Community College were calculated incorrectly, which led to some students receiving incorrect amounts of financial aid.

That information was told to the BC3 board of trustee members Wednesday in an annual audit by Maher Duessel, CPAs, of Pittsburgh,

In nine cases Maher Duessel examined, some students received more aid than they needed, others received less and some could have received subsidized loans with a lower interest rate than they got.

In addition, a 40-item audit sample extrapolated to a $41,000 error, or less than 1 percent of the total federal family education loans BC3 received, the report said.

The auditors recommended that student loan calculations be done by one person and reviewed by another. The college agreed, and developed a plan to do that.

Overall, the audit showed that the college’s finances are in good shape.

In another matter, BC3 officials postponed the completion of a cost allocation study that was expected to be done this month.

The study is under way to evaluate whether BC3’s out-of-county sites are funded by Butler County taxpayers. The county gives BC3 $4.9 million annually.

The study was requested in April by Jack McMillin, county treasurer.

BC3 officials wanted to complete the college’s annual audit before finishing the cost allocation study. However, they believe the overhead rate they charge out-of-county students covers their costs.

The BC3 Foundation funded the college’s new Mercer County building, Linden Pointe BC3, with private financing. Spring semester classes will begin there and at BC3’s other campuses Jan. 18.

The college also has a facility in Lawrence County.

The foundation, which is the college’s private fundraising arm, also owns the Succop Conservancy in Penn Township.

In a report Wednesday, BC3 board members heard about short- and long-term actions that foundation officials have approved to shore up the conservancy’s finances.

“The conservancy has not made money,” said Joan Chew, BC3 board member, after the meeting. In fact, the 50-acre property has never broken even, she said.

As such, the foundation has approached potential “partners,” including the Butler County Chamber of Commerce, the Community Development Corporation of Butler County, Penn Township, a Realtor, and a commercial interest.

Partners are being sought to “enhance the conservancy’s programs, services and revenues,” according to Ruth Purcell, executive director.

In addition, the foundation is:

n Having the conservancy property appraised

n Renting out the Nicklas House on the property for rent at $800 per month, plus utilities

n Making a fundraising appeal to 3,000 persons

n Making a temporary reduction in conservancy staff

n Canceling some promotional activities

n Moving the blacksmithing class from the Heritage School at the conservancy to BC3’s continuing education division.

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